Download Energy Smart New Orleans - New Orleans City Council

Energy Smart New Orleans
Introduction
On December 6, 2007, the Council of the City of New Orleans
unanimously adopted Resolution R-07-600 asserting its commitment to
energy efficiency and the development of a viable energy efficiency
program.
Energy Smart New Orleans lays out the process and steps toward
implementation of the Council’s vision on energy conservation and
efficiency expressed in R-07-600 and its commitment to ensuring the
long-term stability of energy supply and energy prices for ratepayers in
New Orleans.
Energy Smart New Orleans
Statement of Purpose:
•
Growing energy demand challenges the attainment of clean air and other public health goals.
•
Increasing prices impose significant financial burdens on households and businesses, and reduce economic
growth.
•
Growing energy demand and rising energy prices, both domestically and globally, create stresses on
energy supply and current utility systems, and drive up utility costs.
•
Low-income persons and the elderly are especially vulnerable to rising energy costs.
•
Energy efficiency measures can relieve this pressure by lowering energy bills, increasing customer
control, and increasing customer satisfaction.
•
New Orleans currently is presented with a one-time opportunity to incorporate energy efficiency and
conservation measures into the rebuilding effort.
•
Reducing energy consumption may make us less vulnerable to service disruptions from natural disasters
or terrorist acts.
•
Cost-effective energy efficiency measures, according to some estimates, may be able to meet 50% or more
of load growth nationally, resulting in huge savings and dramatic reduction in greenhouse gas emissions,
as well as reduced need for new energy supplies.
•
Such measures are consistent with the Utility Committee’s commitment to ensuring the long-term
stability of energy supply and energy prices for ratepayers in New Orleans.
Energy Smart New Orleans
I. Recognize energy efficiency as a high-priority energy resource, and commit to its full
development by the Utility Committee.
I.A. Objective:
Establish and make public the Council’s position on energy efficiency and
conservation programs
(Completed 12/07):
Adopted Resolution R-07-600
Energy Smart New Orleans
I.B. Objective: Develop a process to explore the energy efficiency potential in the City that will:
- Achieve broad consensus
- Focus on cost-effectiveness
- Be technically and financially feasible
- Incorporate best practices
(Completed 11/07):
Supported the formation in the Spring of the Energy Policy Task Force, to which
stakeholders gave hundreds of volunteer hours, producing the Energy Hawk Report in the
Fall that identified numerous potential energy policy initiatives for the Council’s
consideration.
(Completed 12/07):
Received proposal from the authors of the Energy Efficiency Initiative, which identified
additional potential energy policy initiatives for the Council’s consideration.
(Ongoing):
Work with Entergy New Orleans, the Alliance for Affordable Energy, and many others in
the community to better understand the City’s energy efficiency needs.
(Completed 12/07):
Held hearings to introduce information and initiatives for public comment, including the
Green Light New Orleans project to distribute compact fluorescent light bulbs to residents
and the “Geaux Green” Louisiana state income tax credit program for wind and solar energy
systems.
(Ongoing):
Coordination between Utility Committee and Mayor’s designee regarding executive branch
initiatives related to energy efficiency.
Energy Smart New Orleans
I.C. Objective: Establish criteria for Council action on pending proposals, focused on
identifying proposals that are most:
- Timely;
- Cost-effective;
- Technically sound;
- Financially feasible;
- Compliant with best practices; and
- Most beneficial to the community, with emphasis on the low income, elderly, and others
vulnerable to rising energy costs
(Completed 1/08):
Solicited expertise from the United States Department of Energy and National Renewable
Energy Laboratory to inform the Utility Committee’s energy policy and energy efficiency
objectives.
(Ongoing):
Obtain guidance from NREL regarding the cost-effectiveness and feasibility of various
potential energy efficiency measures.
(Ongoing):
Receive nominations from stakeholder groups of representatives to facilitated meeting.
(Targeted 3/08):
Convene facilitated meeting of stakeholders to evaluate and prioritize potential energy
efficiency measures, identify available resources, and chart next steps.
[NOTE: Measures below marked “CONSIDER” will be evaluated at the facilitated meeting
and updated once considered and prioritized.]
Energy Smart New Orleans
I.D. Objective: Broadly communicate to the community the benefits and opportunities for energy
efficiency, and support the National Action Plan for Energy Efficiency and the Vision for 2025.
I.D.1. Reach all ratepayers, with emphasis on the low income, elderly, and others most
impacted by energy costs.
(Target Date TBD):
CONSIDER: Creating and conducting a public education campaign to educate
homeowners and businesses regarding the benefits of weatherization and energy
efficiency measures.
(Target Date TBD):
CONSIDER: Assisting homeowners and businesses in weatherizing and increasing
the energy efficiency of existing structures.
(Target Date TBD):
CONSIDER: Establishing a recognition and awards program to highlight the work of
groups engaged in important efforts to improve energy efficiency in New Orleans.
(Target Date TBD):
CONSIDER: Creating a Center for Excellence in the Built Environment (CEBE):
1/08: Received report from Myron Katz, Ph.D., providing information regarding
potential sources of funding, other models, reasons for, work of, and value to New
Orleans of a CEBE.
3/08: Utility Committee staff visit to the Florida Solar Energy Center.
4/08: Provide response to Energy Policy Task Force within broader energy policy
goals as established and set forth in final Energy Policy for City of New Orleans.
Energy Smart New Orleans
I.D.2. Better educate the community about the work of the Utility Committee and the
importance of progressive energy policy to quality of life and economic
development in New Orleans.
(Ongoing):
Better publicize the work of the Utility Committee, and agendas for
Utility Committee meetings.
(Completed 2/08):
Send letter to stakeholders summarizing accomplishments to date and
action plan for further development of energy policy.
(Ongoing):
Confer regularly with energy policy stakeholders to receive input and
provide updates.
Energy Smart New Orleans
II. Take advantage of the current opportunity to incorporate energy efficiency and
conservation into the rebuilding effort.
II.A. Objective: Review building code enforcement and education programs to
ensure compliance with energy efficiency standards in current
building code.
(Completed 2/08):
Convened meeting of building code stakeholders to clarify existing
programs and determine adequacy of existing framework.
(Target Date TBD):
CONSIDER: Enhancements to existing building code enforcement and
education programs.
Energy Smart New Orleans
II.B. Objective: Establish energy use baseline, against which to measure effectiveness of energy
efficiency measures.
(Completed 2/08):
Obtain guidance from NREL regarding components of energy use baseline, e.g.
- Number of existing homes
- Number of homes currently permitted for – construction
- Number of homes undergoing major renovations
- Average home size
- Average home age
- Average residential energy use per square foot
- Typical appliances used
- Average energy use by customer category (residential, commercial,
industrial)
- Municipal energy use
(Target Date 5/08):
Obtain energy use baseline data from Entergy.
Energy Smart New Orleans
III. Develop incentives equally for efficiency and supply resources.
III.A. Objective: Update and improve Integrated Resource Planning (IRP).
(Ongoing):
Task advisors to evaluate least cost planning requirements in
current ordinance and identify IRP models from other
jurisdictions served by multi-state utility holding company
structure.
Energy Smart New Orleans
III.B. Objective: Align customer pricing and incentives to encourage investment in
energy efficiency.
(Completed 5/07):
Adopted revised Net Metering Rules enabling residents and businesses to
employ environmentally friendly, renewable energy technologies to save
on their energy bills and maintain reliability by using energy from the
electric grid only when needed.
(Target Date 7/08):
Redesign rate structure to build in incentives for conservation, e.g.,
through use of inclining rates keyed to energy consumption.
Energy Smart New Orleans
III.C. Objective: Modify policies to align utility incentives with the delivery of costeffective energy efficiency and modifying, as appropriate, Council
ratemaking practices to promote energy efficiency investments.
(Ongoing 2-4/08):
Review and solicit comments on Entergy’s green power purchase
proposal.
(Target Date TBD):
CONSIDER: Development of a Renewable Portfolio Standard.
(Target Date TBD):
CONSIDER: De-coupling of utility profits from energy sales.
3/08: Schedule presentation to Council Utility Committee
regarding successful de-coupling initiatives in other jurisdictions.
Energy Smart New Orleans
IV. Use the Council’s regulatory and rate-making authority to achieve broad-scale energy
efficiency goals for the City.
IV.A. Objective: Integrate energy efficiency into energy resource plans at the
utility and regulatory level.
(Target Date TBD):
CONSIDER: Evaluating the feasibility of distributed generation,
to enable consumers and independent electricity producers to
generate electricity from renewable sources for the benefit of all
of the users of the electric grid.
Energy Smart New Orleans
IV.B. Objective: Encourage Entergy New Orleans, Inc., to investigate and
implement such cost-effective state of the art billing, information
sharing, and delivery, and advanced technology systems into its
resources plans.
(Target Date TBD):
CONSIDER: Redesigning customer bills to enhance
consumer education, graphically highlight energy
consumption, and illustrate conservation opportunities.
(Target Date TBD):
CONSIDER: Deploying “smart meters” to enable
conservation and encourage energy efficiency.
Energy Smart New Orleans
IV.C. Objective: Provide sufficient, timely and stable program funding to deliver
energy efficiency where cost-effective.
(Ongoing):
Task advisors to determine opportunities for funding and/or offsetting energy
efficiency investments through the millage.
(Ongoing):
Task advisors to identify potential sources of grant and philanthropic funding.
(Completed 2/08):
Obtain guidance from NREL regarding established and accepted tests for
programmatic cost-effectiveness.
(Target Date TBD):
CONSIDER: Energy Efficiency Initiative proposal for financing of residential
energy efficiency improvements, and options for recapture of improvement costs.
(Target Date 7/08):
CONSIDER: Systems benefit charge as possible mechanism to fund Citysponsored energy efficiency measures.
2/08: Obtained initial quantitative analysis of funds generated by systems benefit
charge imposed at various levels (e.g., 1% or average of $1.00 per account).
Energy Smart New Orleans
IV.D. Objective: Safeguard customer service.
(Target Date 7/08):
Work with Entergy in context of ratemaking proceeding to ensure
continued high quality customer service and service reliability.
Energy Smart New Orleans
Energy Smart New Orleans Action Plan:
2008
Feb.
March
April
May
June
July
August
Sept.
Analyze and further refine proposals developed by stakeholders (ongoing)
Launch Energy Smart New Orleans project at monthly Utility Committee meeting (2/28)
Convene facilitated meeting of stakeholders to review and prioritize proposals according to Council criteria (mid-March)
Formal introduction of energy efficiency proposals for Council consideration (April/May)
Complete Energy Smart New Orleans action plan (April)
Opportunity for public comments (April/May/June)
Entergy New Orleans ratemaking proceeding commences (July)
Council action on selected energy efficiency initiatives (June/July/August/September)